International Equal Pay Day

September 18th marked International Equal Pay Day, a global observance that is designed to highlight the wage disparities that still exist between men and women. Equal pay for work of an equal nature and value is a fundamental right that is still no more than a dream for many women across the world.

The gender pay gap still remains a major issue in all countries, globally estimated to be approximately 20%, according to an article published by the British Federation of Women Graduates in the run up to this year’s day of observation.

There are a number of reasons why the pay gap still exists that are rooted in history and culture, but many firms are taking proactive steps to ensure that they eliminate any unfair practices which cause or prolong the inequality.  However, change needs to be driven from the top down as well as from the bottom up.  Governments need to review pay gap reporting, implement relevant legislation, and enforce equal workers rights. The European Union has implemented a Pay Transparency Directive to strengthen equal pay measures, for instance, to help its member states become aligned on the principles of equal pay.

However, it is often down to individual employers to drive change.  Some of the most effective approaches include:

• Clearly defining compensation policies to ensure fairness.
• Making reward structures transparent and available to all employees.
• Being more transparent in setting reward criteria thus making it harder for unconscious biases to exist in compensation decisions.

Having a comprehensive set of pay data is also important as that helps drive the right decisions when it comes to pay.  Conducting regular equal pay audits across similar roles within the relevant industry helps to identify and rectify wage gaps. Implementing a data-driven strategy in relation to pay and compensation allows companies to make informed decisions and measure the effectiveness of their equal pay initiatives.

Many companies have made significant strides in achieving equal pay. However, it’s important to note that addressing pay equity is an ongoing process that requires continuous effort and focus to maintain and improve over time.  It would be amazing that in years to come we could celebrate across the globe the success of the 18^th of September, rather than it highlighting the widening gaps in inequality.